United Natural Foods (NYSE:UNFI) earned $107.60 million in the third quarter, up 12.4 percent from the previous quarter. United Natural Foods’ sales fell 3.89 percent to $6.62 billion in the second quarter. In the second quarter, United Natural Foods made $122.82 million on sales of $6.89 billion.
What is the definition of Return On Capital Employed (ROCE)?
United Natural Foods’ Return on Capital Invested, a measure of yearly pre-tax profit relative to capital employed, has shifted as earnings and sales have changed. In general, a greater ROCE indicates that a company is growing successfully and that future earnings per share will be higher. United Natural Foods had a ROCE of 0.08 percent in the third quarter.
It’s vital to remember that ROCE assesses historical performance and isn’t intended to be used as a forecasting tool. It’s a strong indicator of a company’s previous performance, but various factors could have an immediate impact on earnings and sales.
Return on Capital Employed (ROCE) is a key indicator of efficiency and a useful metric for comparing businesses in the same industry. A high ROCE shows that a company is making profits that can be reinvested into new capital, resulting in higher returns and EPS growth for shareholders.
In the case of United Natural Foods, the positive ROCE ratio will be a factor to consider when making long-term financial decisions.
Insights into Q3 Earnings
United Natural Foods announced $0.94 earnings per share in the third quarter, above analyst expectations of $0.88./n
